Overview

February posed significant hurdles for Bitcoin, diminishing its risk-adjusted returns relative to other assets. As of now, Bitcoin’s total returns have been on par with those of gold, a traditional safe haven, but its risk-adjusted performance aligns more closely with major stock indices.

Bitcoin

Key Points:

• Bitcoin’s risk-adjusted returns have weakened significantly in February.
• Over the past year, Bitcoin’s total returns are comparable to gold, but the risk-adjusted performance aligns more with stock indices.
• Year-to-date, gold has outperformed Bitcoin by over 11%.

Storage of Data

Data provided by Ecoinometrics reveals that Bitcoin has faced many challenges recently, including geopolitical tensions and uncertainties surrounding regulatory frameworks.

“February hit risk assets hard. Bitcoin took an especially tough blow to its risk-adjusted returns advantage.” — James Van Straten, CoinDesk.

Due to its current market volatility, Bitcoin’s appeal to institutional investors might wane, as they usually prefer assets that provide a beneficial risk-reward profile.